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Environmental and Social Management Frameworkimplementation. It is not clear if PAPs can exercise this right or it is entirelythe decision of the government.• Lack of consideration of the apparent time gap between notification ofacquisition and the payment of compensation is another limitation of theexisting legal framework.The summary of this analysis is presented in tabular form in the Table 71. below.7.2.3 Recommendations to Bridge the GapsThe results of this policy review of both the World Bank and GoN are taken intodue account in the development of a Resettlement Policy Framework (RPF)including a policy matrix for entitlements to compensate losses from projectinterventions. In addition, a Vulnerable Communities Development Framework(VCDF) had been prepared (see Chapter 8 of this ESMF) to ensure thatprovisions of the policies articulated in the GoN Tenth Plan on the support toindigenous, ethnic and vulnerable groups as well as the provisions forwarded bythe World Bank’s OD 4.20 on Indigenous Peoples are addressed properly by theforthcoming project.Policy recommendations to close the identified gaps and limitations are:• A project affected person needs to be defined as a person or householdwhose livelihood or living standard is adversely affected through loss of land,housing and other assets, income, or access to services as a consequence ofthe implementation of the project, causing a change in land use.• Entitlements should be established for each category of loss.• Special attention should be given to protect the interest of vulnerable groups.With a census date as cut-off date, no fraudulent encroachments after thisdate should be considered eligible for entitlements of compensation.However, landless farmers/ squatters who have been occupying public landfor at least 3 years before the cut-off date, but without legal title, which hasnot been claimed by others, should be entitled to compensation for the lostland and entitled to be legalized on the remaining unaffected portion, if theydo not have title to any other agricultural land. Non-land assets should becompensated at replacement value and their relocation and transportationmust be assisted. Support for vulnerable groups should be provided toimprove their livelihood.• Practical provisions must be made for the compensation for all lost assets tobe made at replacement cost without depreciation or reductions for salvagematerials. Efforts must be made to assess the real replacement costs of landto the extent possible. A procedure should be established for determiningcompensation rates accurately plus rigorous efforts to assess thereplacement costs and market rates for all assets, including labour costs forconstruction.• There must be legal provision of PAPs and local representatives ofVDC/Municipalities participation in settling the resettlement issues related tocompensation, relocation and rehabilitation.April 2007 Chapter 7-3